From masala to millennials: Tracing MTR's brand journey

With practically every product making a play for the millennial consumer, specifically the bracket just under or over 30, could packaged food be far behind? MTR Foods, a company with a hoary legacy, is almost certainly not the first brand you’d associate with millennials. But the Bengaluru-headquartered firm intends changing that in the near future.

MTR used to be ubiquitous for its mixes, carefully packed into the suitcase of every Indian student who was going to study abroad, but considered ‘non-vegetarian’ the stuff of nightmares. The US or UK bound student in the 80s and 90s was not bothered by the preparation time and effort involved, considering it a small price to pay for home-cooked food in lands where there was nary an idli or dosa in sight. Such patience is thoroughly lacking in the younger lot of today. And so, after a long-tail study of this customer’s choices and preference, MTR has launched a 3-minute breakfast range. It’s also hoping to gain some much needed relevance to a more youthful demographic.

As per Sanjay Sharma, CEO, MTR Foods, the range will be a big inspiration for the development of the MTR portfolio. “We see this (breakfast) as an Rs 1000 crore opportunity and as the face of MTR in the next few years,” he adds.

The homemaker contour has changed acutely over the last few years. Cooking is no longer as big a priority in a world increasingly dominated by double income households. Views Sunay Bhasin, CMO, MTR Foods, “Today’s youth have a severe paucity of time and do not have the knowledge of Indian food, perceiving it to be cumbersome to prepare, resulting in a reduction of Indian cuisines’ share on the household dining table.” The current generation consists of convenience seekers: eating out on a regular basis or skipping breakfast is not a big deal. Adds Tithi Ghosh, executive vice president & head of advertising, Ogilvy & Mather, South, “The new age consumer’s role has moved out of the kitchen to becoming the cheerleader, mentor, facilitator and peacemaker. Laying out tasty meals remains a motivation, but she wants to do more.”

Taste, health and convenience are the three anchors of Indian breakfast and somewhere the last factor is a big roadblock, feels Sharma. A self-confessed foodie who feels he is in the right industry, Sharma recalls being upset at how difficult it was selling Indian foods to Indians. Even for a company like MTR which was the first to diversify from masalas to full-fledged food. It explains why the Western breakfast market is a formidable `1500 crore compared to the paltry Rs 150 crore Indian breakfast market. Corn flakes, muesli and oats seem to be the winners over poha, idli and upma, so far.

MTR Foods hopes to usurp a chunky slice of the market with its recently launched breakfast range. It comprises upma, poha, Indian style oats and kesari bhaat that only need hot water and 3 minutes of a consumer’s time, before they are ready to eat. The range has been launched in a box, cup and single serve pouches. It’s set to be distributed across the Top 100 towns in the country.

Breakfast is a good space to occupy, feel many marketing experts. While everyone from our grandmas to our doctors encourage us to “to eat breakfast like a king…” nobody seems to have the patience or time. This is especially true of millennials where concepts of fixed bed time or fixed meal times have blurred, says Ashwini Deshpande, co-founder, Elephant, the design agency behind the brand. Adds Abneesh Roy, SVP, Edelweiss Financial Services and a FMCG sector analyst, betting on breakfast is a good idea since the Indian consumer is more willing to try ready to eat offerings in breakfast than for other occasions like lunch or dinner. However, the challenge in his view is that in the FMCG business the fact is ‘Jo dikhta hai who bikta hai’ and there MTR may take a hit due to its low visibility and lesser ad-spends.

To reach this new audience, there has been an overall change of approach, that includes changes in messaging as well as media choices. For the first time, digital forms almost 30% in the overall mix. While the team is very clear they do not want to continue to talk to the grannies or even to the current 40-45 age group, an obvious question is the risk of alienating its loyal base. Accedes Sharma, “There could be some alienation but the benefits of starting to build ourselves for tomorrow are far bigger than losing the core.” As per Ashish Bhargava, partner, True North Managers, (formerly India Value Fund Advisors), the single biggest challenge would have been to make itself relevant and appeal to the mind and palate of the emerging consumer. MTR targeting millennials with a breakfast range is a good idea and can set the stage for a bigger platform.

Advantages of being a legacy brand are many - for instance, the authenticity of ingredients, recipe or taste are easily accepted in the shopping basket. However, brands like MTR have to be careful that the legacy does not become an albatross around the neck.